When you own a car, there are many important decisions that you will have to make to ensure you are in compliance with the law and taking care of your vehicle. One important decision that you will have to make is when you are deciding to purchase auto insurance. There are several things that you must know about car insurance requirements, the types of insurance available, and other factors to make sure you get the best policy possible for your situation.
When is it Required?
There are many situations in which having car insurance will be a requirement for you. One of the basic requirements that come with having a car is carrying liability insurance at all times. All states in the country require that you have liability coverage in place whenever you are on the road, although the levels of liability coverage required do vary from place to place.
When you have liability coverage in place, it will only provide you with coverage for damage to the other party in an accident. Because of this, you may also be required to have additional auto insurance coverage if you still have a loan or lease outstanding. In many cases, your finance company will require that you carry additional collision and comprehensive coverage at all times.
What Does Collision and Comprehensive Insurance Cover?
Since liability coverage will only provide coverage for the other party in an accident, you will likely want to have collision and comprehensive coverage as well. Collision coverage will provide you with insurance reimbursement in the event your car is damaged in an accident in which you are at fault, or if the at fault party does not have insurance in place. The comprehensive policy will provide coverage for a variety of other situations, including if your car is stolen, vandalized, or if you accidentally hit an animal.
How to Use It?
When you have a car insurance policy in place, you will want to be able to contact your agent at any time. Ideally, you should contact the insurance company as soon as you realize that a claim needs to be filed.